Subprime Mortgage Meltdown, Alexander housing plan takes fire from right
Posted by James Breen at 1 April 2008 16:59
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Sen. Lamar Alexander (R-Tenn.) is pushing a housing plan that is taking heavy fire from conservatives. Alexander, along with Sens. Kit Bond (R-Mo.) and Johnny Isakson (R-Ga.), is sponsoring the Security Against Foreclosures and Education Act, which would, among other items, provide a $15,000 tax credit over three years for purchasing a home in or near foreclosure. According to The Hill, a Capitol Hill newspaper, one Senate GOP aide called the tax credit "garbage." More from The Hill: But ..».
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There's no doubt that the U.S. economy is in a downturn. The cost of petroleum has skyrocketed, creating all manner of ripple effects throughout the economy. The "housing bubble" has burst in several cities and the sub-prime mortgage industry has gone bust, leaving many people upside down in their houses or facing — or experiencing — foreclosure. Bear-Stearns sold for pennies on the dollar. And the government is scrambling to at least give the appearance of doing something about all this. .. Keep Reading.
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The "subprime mortgage" fiasco is being treated as if it is some kind of exotic financial disease heretofore unknown to man. There seems to be a lot of "how could we have known?" going around. But if one looks beneath the specifics and gets to the generalities, one quickly realizes the fiasco is of a type that can be traced far back in history The specifics are different but the generalities are the same. The problem is one of speculation. Speculation is a problem associated with the .. read the rest.
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